Paris Agreement

New working paper makes case for "modest" carbon taxes

Data: Knittel, 2019; Chart: Harry Stevens/Axios

Even "modest" carbon taxes, like those seen in the chart above, would cut emissions as much as the Obama-era vehicle and power plant rules that President Trump is abandoning, an MIT economist found in a new working paper.

Why it matters: The results "underscore the economic power of a carbon tax" compared to "economically inefficient" regulations, writes Christopher Knittel, who directs the MIT Center for Energy and Environmental Policy Research.

Expert Voices

Investor pressure is driving climate action at fossil fuel companies

an oil derrick holding up a small globe
Illustration: Rebecca Zisser/Axios

As the political urgency around climate change has grown, activist shareholders are increasingly pressuring fossil fuel companies to change how they operate.

The big picture: Climate-related reforms have received especially strong support from large institutional investors, yielding changes in disclosure, governance, compensation and more.